EUR/USD rejected above 1.1400,  retreats to 1.1370

  • EUR/USD approached weekly highs but lost strength and dropped back below 1.1400. 
  • DXY stabilized and trimmed losses, still down for the day. 

The EUR/USD pair pulled back and trimmed gains after being rejected from above 1.1400. The euro is up for the day, supported by a weaker US dollar still inside the weekly range. 

Lower US yields, weaker-than-expected US data and a decline in equity prices affected the greenback versus European currencies and the yen. The DXY fell from levels on top of 97.00 and bottomed at 96.55, at the same time, EUR/USD peaked at 1.1411, the highest level in two days. 

The EUR/USD lost strength near the critical resistance area of 1.1420, and it failed to hold on top of 1.1400. Recently dropped to 1.1367, trimming daily gains. Despite recent volatility triggered by US dollar moves, price remains inside the weekly range, contained by 1.1420 and 1.1300. 

EUR/USD levels to watch

To the upside, if the euro rises, above 1.1400 a test of the key 1.1420 zone could be seen. A breakout of the motioned level would open the doors to more gains with the first target seen around 1.1445. On the flip side, the immediate support is the 1.1355/60. A slide below would remove the bullish intraday bias. The next support levels are 1.1335 and then 1.1305. 

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